Notification no. 32/2004-Service Tax, dated 3rd December, 2004 [now Notification
no.1/2006-S.T., dated 1.3.2006] exempts service tax on seventy-five per cent of the gross
amount charged in respect of taxable service provided by a goods transport agency to a
customer, provided that credit of duty paid on inputs or capital goods [now input services
also] used for providing such taxable service is not taken and benefit of Notification No.
12/2003-service tax, dated 20th June, 2003 is not availed of by the goods transport agency.
Notification no. 32/2004-Service Tax, dated 3rd December, 2004 [now Notification
no.1/2006-S.T., dated 1.3.2006] exempts service tax on seventy-five per cent of the gross
amount charged in respect of taxable service provided by a goods transport agency to a
customer, provided that credit of duty paid on inputs or capital goods [now input services
also] used for providing such taxable service is not taken and benefit of Notification No.
12/2003-service tax, dated 20th June, 2003 is not availed of by the goods transport agency.
Notification No. 35/2004-Service Tax, dated 3rd December, 2004 prescribes that the
person making payment towards freight would be liable to pay the service tax, in case the
consignor or the consignee of the goods transported in one of the following,-
(i) Factory registered under or governed by the Factories Act;
(ii) Company established by or under the Companies Act;
(iii) Corporation established by or under any law;
(iv) Society registered under Societies Registration Act or similar law;
(v) Co-operative society established by or under any law;
(vi) Dealer of excisable goods, registered under the Central Excise Law; or
(vii) Any body corporate established, or a partnership firm registered, by or under any
law.
4.5. In cases other than those mentioned in para 4.4 above, the service tax is to be paid by
the Goods transport Agency. The Goods Transport Agencies are required to issue a
consignment note (even in cases covered under para 4.4) other than in cases where the
service in relation to transport of goods by road is wholly exempted from service tax. The
consignment note should be serially numbered and should contain the names of the
consignor and consignee, registration number of the goods carriage used for transport of
goods, details of goods transported, place of origin and destination and person liable for
paying service tax.
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